Search results
(8)
Price, trading volume and open interest
The price is not the only weighty factor to be considered while analyzing Forex market. Besides the currency exchange rate, its trading volume plays an important role, too.There is the postulate of the Dow Theory that tells that the trend m...
Chapter 5. Forex quotes
When we buy something in a shop, a price tag shows us the price of an item in the domestic currency. For example, we pay $12 for a book which is common practice for us.In the Forex market, we always trade one currency against another. There...
Quotation
The term “to quote” is most likely to have come from the French verb "coter" which means to mark/label with numbers. The quote is the value of one currency unit denominated in terms of another currency.For example, the EUR/USD rate is 1.275...
Point
Point (pip) is the smallest change in the currency price in the last digit of a quote (i.e. the last digit of a decimal).
Trend reversal patterns
The charts of any currency price movement with any units of time measurement form periodical and identical patterns of different type. Some of these figures are always formed on the charts before the trend ends, when the operation volume in...
Moving average envelopes
Simple moving average can be transformed into a new tool - moving average envelopes. This tool, like the [[Bollinger bands|Bollinger bands]], is used for the detection of the current price movement boundaries. FormulaThe indicator consists...
Chapter 7. Cross currency pairs
The trading operations on Forex are carried out not only against the US dollar. We intentionally have not touched on these operations until now to make the content more intelligible. The currency rates, which do not include the US dollar, a...
Chapter 18. Commodity currencies on Forex
As we have already found out from previous chapters, the currency price is determined by a great variety of factors, such as: economic, political and some others. All listed factors concerning each country separately influence its national...
